💡 Policy Bazaar 💡

PB Fintech Ltd, popularly known as Policy Bazaar is India’s largest online platform for insurance and lending products through its flagship brands - Policybazaar and Paisabazaar platform through which they provide convenient access to insurance, credit, and other financial products.

FINANCIALS 📊
• Stock is trading at a Debt-to-equity ratio is at 0.03, and ROCE at -21.4%
• Revenue grew by 60.65% YoY in FY22 to INR 1,424 Cr
• Operating expenses were at 163.29% of revenue resulting in EBIDTA of INR -902 Cr in FY22
• Reported losses of INR 833 Cr in FY22, losses grew to 455.33% YoY

HIGHLIGHTS 📣
• The prime growth driver for PBF should be in the increasing premium income expected in the digital medium
• Individual new business premium (life) and retail health insurance sourced from online channels (web aggregators + insurer websites) grew at 38% vs 12% for non-digital channels
• New business premium income for PBF has grown at 26% vs the 11% witnessed by the industry
• Based on industry estimates, premium via online channels stood at USD 1 Bn for India representing 1% of total FY20 premium which is significantly lower than the US (13%) and China (5.5%)
• The long-tail nature of insurance business drives high operating leverage as renewal book typically should not call for any additional cost and ideally be operating at near-100% contribution margin

TECHNICAL ANALYSIS 📈
• Stock has been moving in a downtrend for the past 6 months
• The Pivot indicator shows that the stock has taken support twice at INR 553.15 in the recent times
• CCI indicator shows the stock is at an oversold region and whenever it starts moving to the overbought region, it gives the first indication to go long on the stock
• In the MACD indicator, the 12-day MACD curve (Yellow curve) cuts the 26-day MACD curve (Blue curve) and moves above the 26-day MACD curve, it gives the conformation to go long on the stock. Check whether the volumes are higher than the 20-day average before entering the trading

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Note: This is not a BUY/SELL recommendation. This is just an analysis for educational purpose

#POLICYBZR #InvestmentIdeas #InvestingUniversity
Chartbusters - chart - 10231313